Friday, October 12, 2007

CGT and governments misunderstanding of entrepreneurs

Doug Richards - from the first two series of Dragon's Den, has a scathing attack of Darling and Brown here over their staggering increase in tapered tax relief for capital gains from 10% to 18%.

Read it in today's Telegraph as he explain two key points:

    1) Small business is where the hope, if any exists, for the future of our economy and country is.
    2) Tapered tax relief was one of the few government initiatives that has really done anything for small business. He cites 2900 or the current 3000 government initiatives being cut now - having spent £12 billion.

Man in a Shed has a vested interest here as he has set up his own company a few years ago. In the first year he paid himself £0, the next £5k, maybe it will be £25k this year (before tax including employers NI contributions ). He hasn't made a pension contribution in nearly 4 years.

At the centre of the company is a piece of intellectual property being developed. Alistair Darling has just helped himself to almost double the amount he was previously going to get.

Small businesses rates for Corp tax are up this year, and next ( thanks Gordon ).

Man in a Shed starts to wonder if Ireland might be a good place to live ....

... if only politicians shared the same risks. In fact if David Cameron wants to really be popular he would abolish the MP's pension scheme and make them buy them on the open market like everyone else. He would also stop the likes of Yvette Cooper and Ed Balls from making so much money from the expense scheme.

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